Maritime enterprises might have anticipated a return to normalcy when the worst of the COVID-19 pandemic subsided in 2022. That effortless journey didn’t materialise. Another turbulent year for supply chains and shipping markets was brought on by the Russian war in Ukraine and the disintegrating world economies, as reported by India Shipping News.
How will be 2023?
Will things improve in 2023? Maybe in certain respects. Experts at Wärtsilä forecast advancement in resolving core industry problems, backed by a growing understanding of the significance of data in fostering a more secure and sustainable maritime sector. However, markets are probably going to stay volatile.
1. Economic headwinds
While the supply chain will continue to normalise, ship owners and operators will still have difficulties due to other market factors like low freight rates, weak consumer demand, and a probable global recession.
Business instincts may tell you to concentrate on cost control in these circumstances. That might be an expensive error for a market that is going through several transformations, not the least of which is the way it uses data and energy.
Instead, a more data-driven, proactive approach to business management will be required to abide by impending rules and promote safer, more effective operations. The industry won’t be able to manage ongoing volatility while being ready for the significant changes it faces unless it embraces innovative solutions.
2. Cross-sector collaboration
Supply chain resilience and decarbonization, two interrelated concerns, will push logistics players to work with their maritime partners more closely than ever before. In terms of decarbonization, the recent COP27 climate discussions made plain the necessity of cooperation across industries; shipping depends on the energy industry to decarbonize, while other industries will need shipping to transport the green fuels they will need to reduce emissions.
To guarantee that each does its part, industries will need transparency driven by shared overarching goals. The launch of the IMO’s Carbon Intensity Indicator (CII) and Energy Efficiency for Existing Ships Index (EEXI) will lay the groundwork for other stakeholders to have the visibility they need to understand the effects of maritime carbon-cutting measures.
Sincere discussions about shared standards and data interoperability are necessary for closer cooperation. In order to achieve a resilient, carbon-neutral supply chain, all stakeholders will work together to launch a significant cross-sector initiative focused on making data truly shareable, according to Wärtsilä.
3. Ports as lynchpins
Ports will be essential in enabling resilience and emissions reduction since they integrate land-based and maritime supply chain infrastructure. Recent crises have highlighted ports’ significance to international trade by bringing them into the public eye. They will use this new respect in 2023 to push for more funding for resilience measures like infrastructure for alternative fuels and digitalized procedures to streamline and speed up cargo flow.
Digitizing ports will make it easier to communicate real-time data throughout the supply chain and ensure that ships can navigate ports more quickly. To help all parties involved in creating a strong, just-in-time supply network, more ports will invest in tracking technologies. At the same time, cybersecurity will have a more prominent place on port boardroom agendas as digital safety continues to be a top concern.
4. Digital uptake advances
The increased scrutiny of emissions provided by new climate rules will encourage ship operators to utilise more sophisticated monitoring and optimization technologies. There will be a short-term demand for efficiency improvements due to the CII and EEXI. Digital systems offer the simplest, most efficient option for organisations to start reducing emissions in accordance with stepwise CII standards because the supply of zero-carbon fuels is still developing.
Beginning in 2023, the CountEmissions EU framework and other legal attempts to increase reporting transparency surrounding emissions will start to have an effect, encouraging more progressive owners to declare their sustainability goals in the open. Ship operators will explore for methods to use that data in other elements of their operations as digital solutions to log the relevant data become standard.
5. New challenges need new talent
The skills gap in the marine will become more obvious as more businesses commit to employing voyage optimization and cutting-edge technology like artificial intelligence. In 2023, businesses will start concentrating on bridging the digital skillset and knowledge gaps that will be required to bring about real-world change in marine in the future.
Wärtsilä predicts a change in the industry’s roles, drawing in people from related fields to quicken transformation and carry out ambitious net zero objectives. The adoption of existing technologies to produce quick effects on decarbonization will further propel the maritime’s digital maturity as a result of an infusion of technology-savvy decision-makers and project managers.
6. Digital twins grow up
Shipping will increasingly rely on digital twinning to make several lines of technology development more financially viable in the face of economic difficulties and the need to speed up innovation. For the majority of the industry’s innovation process, a comprehensive representation of simulated and historical data obtained from ships, components, and operational circumstances will serve as the first phase.
In the early stages of design and prototype, digital twins allow for quick design iterations. Physical tests on test vessels and at experience centres will be conducted afterwards to speed up innovation, allow businesses to fail quickly, and maximise time and cost efficiencies to bring new technology to market more quickly.
7. Virtual becomes reality
According to a recent report by DNV, which was commissioned by the Maritime Just Transition Task Force, the most optimistic projections for alternative fuel uptake could mean additional training for up to 800,000 seafarers by the middle of the 2030s. The energy and digital transitions will create a huge demand for training. Starting in 2023, the capability for virtual- and mixed-reality training will need to evolve quickly to keep up with demand.
Crews must be highly knowledgeable, operate with the greatest levels of safety, and have access to ongoing training programmes if organisations are to benefit from data-driven insights or alternative fuels. Physical exercise can be risky, expensive, and time-consuming. Upskilling or retraining crews will be done more quickly, more efficiently, and at a lower cost by combining this with virtual training.
Did you subscribe to our newsletter?
It’s free! Click here to subscribe!
Source: India Shipping News